RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

Matrix-based model for promoting the ethics principles
in Romanian banking industry
Laurenþiu-Mihai TREAPÃT
Faculty of Management, National University of Political
Studies and Public Administration, Bucharest, Romania
laurentiu.treapat@facultateademanagement.ro
Abstract: Practically, this paper-work has as main objective creating a bivalent calculation model (Matrix),
able to offer support to any bank that would like to enter the Romanian market. This new coming player on
the local market will have the opportunity to use this Matrix, meaning that it will introduce the indicators
that are characteristic for its own activity in the last 5-10 years and will get an overall image and a perspective
of how it will succeed in adapting itself to the Romanian business and banking environment, observing
the ethics rules. We consider the Matrix to be “bivalent” because it relies both on the statistical (historical)
comparison and also on analysis and forecast. On the other hand, the calculation system used within the Matrix
is bi-dimensional, combining the results of the analysis upon the new coming bank characteristics (prudential
ratios, quantitative and qualitative indicators) and the ones of the economic, business and banking environment
in the host market. If the newcomers decided to use our proposed methodology in making the decision
about if and how to enter the local banking market in Romania, they should analyze a series of at least 18
indicators and their evolution trends in time. This becomes possible by using a working instrument called
Matrix and using the calculation outcomes for avoiding the failure on a new banking market. But not only
this, as the newcomers must understand the local perspectives of this market, and by the way they will act
here, they will have to promote and to respect the principles and the ethics rules. By doing their job in a safe
manner judging from the prudential indicators’ point of view, the bank will not jeopardize the economic interest
of its clients, of the economy in the host country and thus we can state that this way, the new coming
bank will perform with professional ethics.
Keywords: ethics, risk management, qualitative and quantitative ratios, banking analysis, financial stability
Introduction
There are many models for analyzing the financial risks, models that can be used by the
universal banks, as institutions that attract the saved resources for investments, as it was demonstrated
(Benink, 1995).
The novelty element that this paper really brings is the pragmatic and efficient combination
of 13 quantitative indicators and other 5 qualitative indicators (that may promote the pro-